• Ghee Money

Elon Musk enters Trump trade territory

Elon Musk in the eyes of many has transformed from a real-life Iron Man to Lex Luther with his decision to advise the new American president, Donald Trump. This is a reversal of Musk's original political leanings; during the campaign in 2016 he called Trump unfit for the Oval office and tweeted on 1/28/17 that the "The blanket entry ban on citizens from certain primarily Muslim countries is not the best way to address the country’s challenges" . https://twitter.com/elonmusk/status/825502400454594561

Musk's electric car company Tesla is one of the first stocks I ever owned. Even before I knew how to purchase securities I remember gushing to a friend in May 2013 that the stock was undervalued. Not long after that email, $TSLA beat Wall St. earning expectations for the first time and rocketed from $55/ share to $79 within a week. After ranging between $140 & $280 while gaining a reputation as a momentum play, I again sang its praises in an October 2016 tweet . It was priced around $190 but had dipped as low as $140 in Feb 2016. Macroeconomics had forced the price downard but I was a big believer the stock remained undervalued. The stock price has risen above $250 as of this writing.

Since Trump won the election many companies have been subjected to headline risk. Trump's willingness to single out companies has already roiled stock prices forthe likes of Boeing, Ford, and pharmaceuticals during his short tenure. Now that Musk is an advisor, perhaps $TSLA will be exempted from Trump's nationalistic tirades and its accompaning volatility. Or maybe its energy strategy and decision to absorb Solar City into will receive glowing reviews from the mercurial commander-in-chief. Musk's business strategy with regard to his electirc car company and solar energy company and battery factory seem sound, so at this point I see little risk on they Hyperloop's biggest champion going for a ride on the Trump train. If course if I'm wrong we may all end up on Mars.

$TSLA Chart Sunday 1/29/17:



© 2020 by Sunset Nice LLC.

All works fair use except as noted. No content is to be construed as investing advice.